mercy-usa€¦ · in 1990. m-usa’s second center opened in the northeastern city of bossaso in...

A Publication of Mercy - USA for Aid and Development, Inc.

®

Mercy-USA2005 Annual Report

2005 Annual Report2

2005 Annual ReportMercy-USA Responds to One of the Worst

Natural Disasters in Human History

December 26, 2004 affected the entire world in ways few other days inhuman history have. That day witnessed an almost unimaginabledisaster that had a direct impact on approximately ten countries alongthe Indian Ocean and on families from numerous other nations aroundthe world. The massive earthquake off the Indonesian Island ofSumatra and the subsequent tsunami that it caused brought death anddestruction to hundreds of thousands of persons from many countries.

Mercy-USA for Aid and Development (M-USA) responded immediatelyto this disaster by mobilizing its staff and local partners to provide aidto survivors in three of the most-affected countries: Indonesia, Indiaand Somalia.

Indonesia

M-USA has focused primarily on Indonesia, the country most seriouslyaffected by this disaster, with more than 220,000 dead or missing, over500,000 left homeless, approximately 240,000 homes destroyed ordamaged, and economic losses estimated at around $4.5 billion. TheUnited Nations estimates that it will take five to ten years to rebuild whatthe earthquake and subsequent tsunami destroyed in seconds.

A family farmer in Indonesiareceiving a FAO seed package

from M-USA.

Reconstruction Phase

Since April 2005, Mercy-USA’s office and staff in Indonesia haveconcentrated on reconstruction and rehabilitation with a special emphasison shelter, water and sanitation, and livelihood support.

From August 2005 to July 2006, Mercy-USA is rebuilding about 100 homesin the village of Seubun Ketapang in Aceh Besar District. M-USA is alsoconstructing a fresh water system (a deep well with piping) for theresidents of this village, which was destroyed by the December 2004tsunami.

From July 2005 to February 2006, with the support of the United Nations Food and Agriculture Organization(FAO), Mercy-USA distributed 47 hand tractors, 25 threshers, 5 reapers and 50 water pumps that are being used byover 2,700 farming families on the island of Simuelue. M-USA also provided these families with 41,000 pounds ofrice seed, 1,100 lb. of maize seed, 200 mixed vegetable seed packages, 600 hoes and rakes (300 each) and327,000 lb. of fertilizers. These inputs are helping these families to support themselves once again.

From April to July 2005, M-USA constructed a fresh water system (a deep well with piping) for 300 homelesspersons living in a temporary shelter in Aceh Besar district.

A home nearly completed in Seubun Ketapang

Seubun Ketapang Village underreconstruction by M-USA.

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Emergency Relief Phase

From January to March 2005, M-USA, in partnership with a localnon-governmental organization, the National HumanitarianFoundation (Indonesian acronym PKPU), provided emergencyrelief in the form of food packages and household kits. Duringthat same period, M-USA and PKPU also dug water wells and builtsanitary latrines for displaced persons.

In January and February 2005, M-USA, working with PKPU,distributed food packages (containing rice, noodles, cannedsardines, biscuits, bottled water, etc.) to 1,200 homeless familiesnear Banda Aceh and Meulaboh. In March 2005, M-USA andPKPU distributed six-month household kits (containing kitchenitems, towels, toiletries, clothing, plastic mats, candles, matches,etc.) to 400 homeless families near Banda Aceh and Meulaboh.

During February and March 2005, M-USA, working with PKPU, dug water wells and built latrines in tencamps/temporary shelters in Aceh Besar. This water and sanitation project has been benefiting approximately4,000 persons.

India

Over 10,000 people in India were killed by the tsunami, andnumerous coastal villages flooded and either destroyed ordamaged. From January to March 2005, M-USA, through our localpartner United Economic Forum (UEF), distributed food packages(containing rice, lentils, oil, sugar, tea, etc.), kitchen kits(containing pots, pans, plates, bowls, cups, utensils, etc.), clothes,plastic tarpaulins, ceiling fans for temporary shelters, sheets andblankets to approximately 2,000 families left homeless by thetsunami in the states of Andhra Pradesh and Tamil Nadu.

Somalia

Despite Somalia’s distance from the epicenter of the December 26earthquake, the destructive tsunami waves traveled across theIndian Ocean to devastate parts of Somalia’s coast, particularly theHafun area in the northeastern part of the country. Many fishingvillages were inundated, and the livelihoods of hundreds ofvulnerable families destroyed. In April and May 2005, M-USA’sstaff assisted 100 tsunami-affected families in Hafun to restart theirsmall fishing businesses. Mercy-USA provided these families withnets, hooks, anchors, buoys and other necessary equipment toallow them to support themselves once again.

Tsunami displaced families in Indiareceiving M-USA Kitchen Kits.

M-USA Program Manager Ghassan Husnigreeting the Indonesian President Susilo

Bambang Yudhoyono during his visit to Acehon the first anniversary of the

tsunami disaster.

Homes under construction by M-USA inSeubun Ketapang Village..

2005 Annual Report

2005 Annual Report4

Mercy-USA Aids Earthquake Survivors in Pakistan and Kashmir

On October 8, 2005 a 7.6-magnitude earthquake struck the northernpart of Pakistan and Kashmir destroying villages and towns, killing over75,000 people in Pakistan and 1,300 persons in Indian-AdministeredKashmir, and leaving several million persons homeless.

From October 2005 to March 2006, Mercy-USA for Aid andDevelopment provided emergency shelter and medical aid to over37,000 earthquake survivors in Pakistan and Kashmir.

Medical Treatment

From October 14, 2005 to March 31, 2006, M-USA supported themedical teams sent by Canadian Relief Foundation (CRF) to Pakistan totreat injured and sick survivors of this devastating earthquake. Duringthis period, these teams treated over 18,500 patients (including 3,108children under the age of five and 2,047 elderly patients over the ageof 60) at three permanent hospitals, three field hospitals and 40 mobileclinics that serviced remote villages in Pakistani Kashmir.

Services provided by these teams included major and minor surgery, physiotherapy, occupational therapy, primarycare and vaccinations, as well as, technical training for local Pakistani health care professionals.

Emergency Shelter

From November 2005 to January 2006, Mercy-USA,through CRF and the Association of Physicians ofPakistani Descent of North America, distributed1,200 winterized tents to 1,200 homeless families(about 6,600 persons) and 7,000 thermal blankets toover 3,150 families (over 16,000 persons) in the AzadKashmir (AK) and Northwest Frontier (NWFP)Provinces of Pakistan. The table left containsdetailed information on these distributions:

During October and November 2005, M-USA, through our partner in India,United Economic Forum (UEF), distributed about 3,700 corrugated galvanizediron (CGI) sheets (traditionally used as roofing material) to 285 families (about2,000 persons) living in seven villages (Bada Chadan, Choti Gwallan, JambhurPatnan, Nambla A, Singtung, Thajal Pawdia and Uri Proper) in Indian-Administered Kashmir. These families used the CGI sheets along with woodbeams that they retrieved from their damaged or destroyed homes to buildsemi-permanent shelters to protect them from the harsh winter weather.

Reconstruction of an Earthquake-Damaged Village in Pakistan

M-USA and its local partners are planning to reconstruct homes and public infrastructure like roads and water andsewage systems in a village in Pakistan severely damaged by the October 2005 earthquake.

During October and November 2005, M-USA, through our partner in India, UnitedEconomic Forum (UEF), distributed about 3,700 corrugated galvanized iron (CGI) sheets(traditionally used as roofing material) to 285 families (about 2,000 persons) living inseven villages (Bada Chadan, Choti Gwallan, Jambhur Patnan, Nambla A, Singtung,Thajal Pawdia and Uri Proper) in Indian-Administered Kashmir. These families used theCGI sheets along with wood beams that they retrieved from their damaged or destroyedhomes to build semi-permanent shelters to protect them from the harsh winter weather.

Reconstruction of an Earthquake-Damaged Village in Pakistan

M-USA and its local partners are planning to reconstruct homes and public infrastructurelike roads and water and sewage systems in a village in Pakistan severely damaged by theOctober 2005 earthquake.

Relief for Persons Affected by Hurricanes Katrina and RitaFrom September to December 2005, Mercy-USA for Aid and Development's disasterresponse teams and the organization's hurricane response office, that was based in LakeCharles, Louisiana, assisted over 300 hurricane-affected families from New Orleans andother parts of Louisiana. Assistance was provided to evacuees and local hurricane-affected families in the Lake Charles and Houston areas.

A doctor treating a woman injuredin the October earthquake at an

M-USA funded field clinic.

Three generations of thisfamily relaxing near their

winterized tent.

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During 2005, Mercy-USA for Aid and Development continued carrying out itswell-recognized tuberculosis (TB) treatment and prevention program inSomalia. This program consists of specialized treatment centers with publiceducation and community outreach.

Opened in 1994, Mercy-USA’s center in Mogadishu was the first specialized TBtreatment facility to begin operation in Somalia after the outbreak of civil warin 1990. M-USA’s second center opened in the northeastern city of Bossaso in1995, and the third began in 1999 at our mother/child health clinic (MCH) inthe southern town of Jilib. Mercy-USA’s fourth center opened in 2005 in thenorthern city of Las Anod and is supported by a sub-grant from GFATM.

These four centers, which have a cure rate of about 80% to 85%, treatedmore than 1,500 TB patients in 2005. M-USA utilizes the most effective TBtreatment strategy, the Directly Observed Treatment Short-course (DOTS)method. During 2005, over 7,000 additional persons were also tested forpotential TB infection by the laboratories at our centers.

In addition to testing and treatment, our centers educate their localcommunities about TB prevention. During 2005, approximately 40,000persons benefited directly or indirectly through health education seminars andeducational radio programs conducted by Mercy-USA health personnel. Also,in 2005, M-USA’s TB centers trained 45 nursing students.

Through an agreement with the United Nations World Food Programme(WFP), M-USA’s Bossaso and Mogadishu Centers also provided 82,000 poundsof food for TB patients and their families. Since 1994, the World HealthOrganization (WHO) has been providing Mercy-USA with all TB medicines free-of-charge.

Controlling Tuberculosis in Somalia

A TB patient receiving his dailymedicine at M-USA's TB Treatment

Center in Mogadishu, Somalia.

Helping Flood Survivors in Bangladesh to RebuildFrom January to June 2005, Mercy-USA for Aid and Development funded the reconstruction of homes, tube wellsand sanitary latrines in Bangladesh that were destroyed by severe flooding in the summer of 2004. Mercy-USA,through our local partner Islamic Aid Bangladesh (IAB), rebuilt 140 homes for approximately 840 persons.During the same period, M-USA also dug 140 tube wells to provide safe drinking water and constructed 168sanitary latrines to improve hygienic conditions for over 8,600 flood-affected persons.

Severe flooding throughout Bangladesh during July and August 2004 adversely affected over 33.5 millionpeople, killing more than 725 persons, and forcing about 1.7 million people to seek refuge in homeless shelters.Over 4 million homes were destroyed or damaged during the flooding, and morethan 300,000 persons contracted illnesses like diarrhea and dysentery fromdrinking unsafe water.

A man in Bangladesh using his newtube well to collect fresh waterA flood-affected family standing in front of their new

home in Bangladesh.

2005 Annual Report

2005 Annual Report6

From August 2003 to March 2006, under a grant worthalmost $3 million from the United States Department ofAgriculture, Mercy-USA for Aid and Developmentdistributed poultry (egg-layer and broiler) packages,fruit tree packages with hand tools, chainsaws, bees andbeehives, hay trimmers, livestock feed mills orgreenhouses to 2,369 families living in the Brcko Districtof Bosnia.

During this period, M-USA also provided over 1,780 ofthese families with training specific to their choice ofinput through group seminars on poultry and orchardcare, greenhouse production and beekeeping.Additionally, Mercy-USA contracted with localagronomists to ensure that on-site consultation andtechnical support was available to any client family thatneeded it.

In March 2006, Mercy-USA began construction on anAgriculture Education Center (AEC) in Brcko. The AECproject, which includes the building of a 10,890 square-foot greenhouse, will serve as a theoretical and practicaltraining center for all of our beneficiary farmers plus allfarmers in and around the Brcko District. It is expectedthat the AEC, initiated under this USDA grant, willdirectly and indirectly benefit approximately 4,000farmers per year.

In 2004, M-USA’s subcontractor for the forestry andagri-training components, Counterpart International

(CPI), assisted approximately 1,500 families under theforestry component, and about 75 acres of forest werecleaned and thinned out to restore biodiversity. Also,during that same period, CPI trained approximately2,000 family farmers through technical supportseminars on a variety of topics including: orchardplanting; sunflower and rape seed oil production;medicinal herb production; protection of fruit trees fromillnesses and pests; and the economics of fruit growingand oil seed and medicinal herb production, etc.

The projects, funded under this USDA agreement, haveimpacted approximately 15,000 people directly throughthe distribution of agricultural inputs and seedlings, aswell as the provision of technical training. In addition,thousands more have indirectly benefited throughgeneral improvements to the Brcko District’senvironment. With USDA’s support, Mercy-USA hasalready helped returnee and formerly displaced familiestake an important step towards a return to self-sufficiency in the near and long term by facilitating theproduction of food at home.

Under two previous USDA grants, M-USA provided over6,460 displaced and returnee families in Brcko Districtwith various agricultural inputs to assist them in revivingtheir small farming businesses. Mercy-USA has alsotrained executives and managers in the wheat millingindustry and other agri-businesses.

M-USA Continues its US Government-Funded Support of Small Farmers in Bosnia

A family in Brcko, Bosnia in their USDA-fundedgreenhouse received from M-USA

M-USA distributing fruit-tree and hand toolpackages in Brcko District.

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From September to December 2005, Mercy-USA forAid and Development’s disaster response teams andthe organization’s hurricane response office, thatwas based in Lake Charles, Louisiana, assisted over300 hurricane-affected families from New Orleansand other parts of Louisiana. Assistance wasprovided to evacuees and local hurricane-affectedfamilies in the Lake Charles and Houston areas.

Within a few days ofHurricane Katrina’sdestructive landfall,an M-USA assessmentteam visitedHouston, BatonRouge, andsouthwesternLouisiana. TheMercy-USA teammet with evacueesfrom the NewOrleans area andsome of the local

communities and organizations housing them.

During September 2005, Mercy-USA staff distributedtwin mattresses, tents, first aid materials (includingantibiotic, burn and insect-bite ointments,antiseptics, bandages, gauze and tape, eye wash,hand sanitizer, medical gloves, etc.), inflatable campmattresses, tarpaulins, fans, sheets, towels, diapers,hygiene packages, brooms, clothing, slippers, bottledwater, ice, Gatorade, juice, batteries, and otheritems to evacuees at Sam Houston Jones State Park,Moss Bluff and other areas around Lake Charles, LA.

From October to December 2005, M-USA staff madeassessment trips to New Orleans and provided relief

in Houston and LakeCharles. They metwith communityleaders, FEMA andother governmentofficials and withreturnees in NewOrleans andevacuees housed inapartments, hotelsand private homesaround Houston and

Lake Charles. M-USA staff also distributedfurniture store vouchers, food packages, store giftcards, twin mattresses, microwaves, vacuum cleaners,pillows, kitchen kits (containing pots, pans, cookingand eating utensils, dishes and cups), toys, first aidmaterials and other items to many of these families.

M-USA closed its Lake Charles’ office in mid-December 2005 but has continued to assisthurricane-affected individuals through localcommunity organizations. Through a partnershipwith Rebuilding Together/Calcasieu, a local charity inCalcasieu Parish in southwestern Louisiana, Mercy-USA will be funding repairs to the homes ofvulnerable persons like the elderly and persons withdisabilities.

Seasonal Food Aid and Clothing Provided Around the WorldDuring 2005, Mercy-USA for Aid and Development provided meat,rice, pasta, beans, cooking oil, flour, other food items and clothing toapproximately 100,000 vulnerable persons in Albania, Bosnia,Indonesia, Kenya, Kosovo, Somalia, Bangladesh, India, and to Chechenrefugees in Turkey. M-USA distributed the above food items andclothing to orphans, the elderly, displaced individuals, refugees,persons with disabilities and those living in poverty.

Food was provided as hot meals and food packages during the Muslimfasting month of Ramadan, while the clothing was distributed as giftsduring Eid ul-Fitr, the holiday that marks the end of the fast. Freshqurbani meat was distributed during the Muslim holiday of Eid ul-Adha.

School children in India with their M-USARamdan food packages.

Relief for Persons Affected by Hurricanes Katrina and Rita

M-USA CEO Umar al-Qadi and M-USA’s Disaster Response

Coordinator Fathi Mohamed withLake Charles Mayor Randy Roach

and Director of Community ServicesEsther Vincent after meeting on

September 20, 2005.

M-USA Disaster ResponseCoordinator Fathi Mohamed

distributing a vacuum and otherhousehold items to an evacuee

family housed in Houston.

M-USA CFO Anas Alhaidardistributing aid to

hurricane evacuees at SamHouston Jones State Park.

M-USA staff deliveringmattresses to a Hurricane-Katrina displaced family

from New Orleans.

2005 Annual Report

2005 Annual Report8

From September 2004 to June 2005, under a $3.2 million grant from the United States Department of Agriculture(USDA), Mercy-USA for Aid and Development (M-USA) provided daily lunch to over 32,000 vulnerable schoolchildren in ten districts in the economically depressed northern and central regions of Albania.

The objectives of this project, like a similar one in the 2002/2003 academic year, were to improve the children’snutrition and encourage attendance, reduce drop out rates, especially among girls, and improve academicperformance. In addition, M-USA improved the hygiene and health knowledge and awareness of these studentsand their teachers through seminars conducted by our health monitors.

The school lunch program helped alleviate the students’ hungerand increased their daily calorie intake while in school. The addednutrition and energy helped students learn more attentively, and, asa result, their academic performance improved.

All student achievement indicators increased at the end of the2004/2005 school year when compared to the previous one. Totalstudent enrollment increased 4.4% (from 30,782 in 2003-2004 to32,143 in 2004-2005). Among girls, enrollment increased 4.9%(from 15,084 in 2003-2004 to 15,825 in 2004-2005). Total studentattendance increased 0.7% (from 98.7% in 2003-2004 to 99.4% in2004-2005).

Moreover, the total percentage of students who successfully passedincreased 2% (from 97% who passed in 2003-2004 to 99% in2004-2005). Total student average marks increased 8% (from 7.2out of 10 in 2003-2004 to 7.8 in 2004-2005) and specifically 9%among girls (from 7.3 out of 10 to 8.0).

Additionally, Mercy-USA and its local partners have built andimproved infrastructure, such as kitchens, lunch rooms andwater and sanitation, at 39 schools. These infrastructureimprovements include the construction of approximately onemile of water piping in Gjorm village, the extension of waterpiping in Fushe Kuqe village, the digging of a water well inKus village, plus the renovation and construction of 33 schoolkitchens and four dining rooms.

In our efforts to build the capacity of local implementingpartners, M-USA organized five training workshops: three fororganizational/managerial development and financialmanagement, and two for health education. Moreover, theproject created nearly 340 new full and part-time jobs at thebusinesses and implementing partners involved in storing,transporting, preparing, serving and monitoring the lunchesfor the children.

Mercy-USA Successfully Completes Second US Government-Funded School Lunch Program in Albania

School children in Albania enjoyingtheir lunch.

Teachers and parents distributing lunch toschool children in Albania.

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Since 1998, through a mobile center (computers andother training materials are moved from one fixed siteto another), Mercy-USA for Aid and Development hasbeen providing computer software training toindividuals in towns throughout the Tuzla Canton.Three-month training courses are given in the leadingbasic office software, Windows, Microsoft Word andExcel.

At the end of each training session, students are tested,and if they have mastered the required skills theyreceive a certificate. Employers in the region recognizethe quality of the training and some have requested M-USA to setup specific courses for their employees. As ofDecember 2005, over 1,100 persons have graduatedfrom this program.

In 2004, Mercy-USA initiated a series of two-monthlong intensive English language courses in SrebrenikMunicipality in northeastern Bosnia. As of December2005, over 200 persons have successfully completedthese courses.

Computer Software andEnglish Language Training in

Bosnia Protecting the Health of Mothersand Children in Somalia

Since 1997, Mercy-USA for Aid and Development hasoperated a mother/child health clinic (MCH) in the JilibDistrict of southern Somalia. The MCH not only servesmothers, children, and women of childbearing age, butalso the general public.

The clinic provides curative services, labor and delivery,pre-natal and post-natal care, immunizations, andmicronutrients like vitamin A supplements. In 2005, theMCH treated over 11,000 patients and immunized over13,500 children and women against measles, diphtheria,pertussis, tetanus, polio or tuberculosis. M-USA alsodistributed vitamins (especially vitamin A) and providedhealth and nutrition seminars to over 6,200 mothers.

In addition, Mercy-USA continues to chlorinate over 100wells and other water sources in Jilib and around Somalia’scapital city Mogadishu to prevent waterborne illnesses likecholera. UNICEF provides M-USA with vaccines,medicines, chlorine and other medical supplies.

Since 1990, Somalia has not had a widely recognized orstrong central government, and has been ravaged byintermittent civil war, famine and drought. This tragicsituation has led to a total collapse of the country’s fragilepublic infrastructure, including the health care system.Non-governmental organizations, like Mercy-USA, havebeen filling the gap left by the absence of governmentinstitutions. M-USA is primarily responsible for healthservices in the Jilib District.

A doctor examining patients at M-USA's MCH Clinicin Jilib, Somalia.

Restoring the Vision ofCataract Patients in SomaliaIn 2005, Mercy-USA for Aid and Development, incollaboration with the Eye Unit of Kikuyu Hospital inKenya and Arafat Hospital and Zam Zam Foundation inSomalia, helped restore the vision of approximately2,200 persons suffering from cataracts in Somalia. M-USA and Zam Zam Foundation arranged for joint teamsfrom Kikuyu and Arafat Hospitals to operate on thecataract patients in Mogadishu. All of these patients arenow able to see.

Doctors perform surgery torestore vision of cataractpatients.

2005 Annual Report

2005 Annual Report10

Audit Letter from Certified PublicAccountants

Year EndedDecember 31, 2005

2005 Financial Audit

Statement of

Financial Position

December 31, 2005

11

Statement of ActivitiesYear EndedDecember 31, 2005


Graphs of Functional Expenses andProgram Service Expenses

Year Ended December 31, 2005

2005 Annual Report



Statement of Functional ExpensesYear Ended December 31, 2005

Statement of Cash Flows

Year EndedDecember 31, 2005

13


Notes To The Financial Statements – Year Ended December 31, 2005

2005 Annual Report

15



2005 Annual Report

17


SupplementalStatement ofRevenues andProgramExpenses

Year EndedDecember 31,2005

2005 Annual Report



Indirect Cost Allocation Schedule

Year Ended December 31, 2005

192005 Annual Report

MERCY-USA FOR AIDAND DEVELOPMENT44450 Pinetree Drive, Suite 201 • Plymouth, MI 48170-3869

Telephone 734-454-0011 • 1-800-55-MERCY (1-800-556-3729)Facsimile 734-454-0303

e-mail [email protected] • http://www.mercyusa.org• Registered with the United States Agency for International Devolpment (USAID)

• Special Consultative Status with United Nations• Member of InterAction

Other Mercy-USA Offices

Independent Financial AuditorsAlan C. Young & Associates, P.C.

Certified Public Accountants

Board of DirectorsMs. Zakia Mahasa, Chairperson

Mr. Faizil BakshDr. Ali El-Menshawi

• All members of the Board of Directors serve asvolunteers.__________

Mr. Umar al-Qadi, President & CEOMr. Anas Alhaidar, CFO

AlbaniaTirana

BosniaTuzla

IndonesiaBanda Aceh

KenyaNairobi

SomaliaMogadishu

Founded in 1986, Mercy-USA, forAid and Development

(M-USA), is a nonprofit reliefand development organizationdedicated to alleviating human

suffering and supportingindividuals and their

communities in their efforts to become more self-sufficient.

M-USA ‘s projects focus on improving health and promotingeconomic and educational growth

around the world.

Special ways to join

Mercy-USA in

“Helping People Help

Themselves”™

These special ways of joining

M-USA in this vital effort

include:

1) encouraging your employer to match your donation, or

2) donating stocks, or

3) making a bequest.

Please call us at

1-800-55MERCY(1-800-556-3729)

to discuss options.

You may also participate in the

Automatic Giving Program; a gift

of your choice is automatically

deducted monthly from your

bank or major credit card

account (please clip the

adjoining form and mail it along

with a voided check).

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